How to profit from peer-to-peer lending

‘Alternative finance’ is an internet-era rival to traditional banks. There are opportunities for smart investors, says David C Stevenson.

The financial crisis of 2008 was good news for one area of the finance industry – ‘alternative finance’. This catch-all term covers activities such as ‘peer-to-peer (P2P) lending’ and ‘crowdfunding’ – in short, companies that enable individuals and firms to raise money while cutting out banks. While companies such as P2P pioneer Zopa already existed, widespread disenchantment with traditional banks, and the low interest rates on offer, brought a surge of interest in Zopa and rivals such as RateSetter and [...]

MoneyWeek magazine

Latest issue:

Magazine cover
Walking out on the banks

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 3 FREE Issues
Shale gas 'fracking' promises to transform Britain's energy market. Find out what it is, what it means, and how to invest.

More from MoneyWeek

The problem with the Bank of England

Fracking: Nine reasons not to get carried away

Five small-cap stocks worth a flutter

This Dutch company could help us tame floods

ScreenHunter_01 Mar. 25 09.51

Get the latest tips and investment opportunities from MoneyWeek magazine: Claim 3 FREE Issues HERE